Payments received from a corporation are typically considered dividends. These are taxed at ordinary income rates. The Internal Revenue Service reasons that since they are paid from the earnings and profits of a corporation, they are ordinary income to you, the recipient.

Each year, the Internal Revenue Service faces pressures from those taxpayers who legitimately utilize a portion of their home as an office. In the past, claiming a "home office" deduction, or the deductions for some of the expenses related to otherwise normal home ownership, triggered a "red flag" that would inevitably increase one's chances of audit.

"An IRS Audit." Those words can often strike fear into the minds of normal law-abiding citizens. Knowing some of the basic IRS principles can help to take the fear out of an audit and even make you feel as if you are comfortably ready to go through with the process.

Because this area has exploded in the past decade, telephone orders and mail order solicitations have their own set of rules which often vary by state. If you do have any particular questions about your state, contact an attorney through member services. We’re here to help.